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European Stocks Close Lower as Sentiment Remains Choppy; THG Plunges 35%

Brendan McDermid | Reuters
  • The pan-European Stoxx 600 slipped 0.1%, paring losses slightly after falling as much as 1.2% in early deals.
  • The IMF on Tuesday cut its global growth forecast, citing supply chain challenges and persistent Covid spread.
  • Investors are bracing for a slew of U.S. earnings, with major banks revealing third-quarter results this week.

European stocks closed mostly lower on Tuesday amid volatile sentiment in global markets.

The pan-European Stoxx 600 closed 0.1% lower provisionally, paring losses slightly after falling as much as 1.2% in early deals. Health care, retail and basic resources stocks fell 0.5% each, leading the losses.

The muddled trade in Europe on Tuesday comes amid a choppy period for global markets, as investors monitor the outlook for inflation, supply chain issues, bond yields and central bank policy.

U.S. stocks were mixed Tuesday, following two days of losses. Shares in Asia also fell overnight.

The International Monetary Fund on Tuesday cut its global growth forecast, citing supply chain challenges and persistent Covid spread.

Meanwhile, U.S. job openings in August fell by more than half a million to 10.4 million, according to data released by the Labor Department Tuesday.

Investors are bracing for a slew of U.S. earnings, with major banks revealing third-quarter results this week; JPMorgan ChaseGoldman SachsBank of AmericaMorgan StanleyWells Fargo and Citigroup are all due to report, starting Wednesday.

Back in Europe, the U.K. added 207,000 jobs in September, official figures showed on Tuesday, taking British employers' payrolls to a record high as the end of the government's furlough program draws near.

Germany's latest ZEW survey of economic sentiment fell for the fifth consecutive month, the institute reported on Tuesday, as supply bottlenecks continued to weigh on Europe's largest economy. The index fell to 22.3 points, below an estimate of 24.0, while current conditions sentiment plunged to 10.3 points to 21.6 against a consensus forecast of 28.5.

In terms of individual share price movement, British e-commerce company THG's shares plunged nearly 35%, while at the top of the Stoxx 600, Swedish tech firm Sinch rose 5.5%.

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- CNBC's Ryan Browne, Eustance Huang and Yun Li contributed to this market report.

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